Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The Company's intangible assets at September 30, 2015, and December 31, 2014, all of which are subject to amortization, consisted of the following:



	September 30, 2015							December 31, 2014
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
	(in thousands)
Energy segment:
Customer relationships	$	54,430	$	(27,280	)	$	27,150	$	54,430	$	(21,938	)	$	32,492
Trade names	4,860		(3,629		)	1,231		4,860		(3,161		)	1,699
Non-compete agreement	120		(43		)	77		120		(25		)	95
	59,410		(30,952		)	28,458		59,410		(25,124		)	34,286

Sports segment:
Customer relationships	2,089		(1,061		)	1,028		2,089		(678		)	1,411
Trade names	122		(55		)	67		122		(37		)	85
	2,211		(1,116		)	1,095		2,211		(715		)	1,496

Total	$	61,621	$	(32,068	)	$	29,553	$	61,621	$	(25,839	)	$	35,782

Amortization expense was $2.0 million and $2.3 million for the three months ended September 30, 2015 and 2014, respectively. Amortization expense was $6.2 million and $7.3 million for the nine months ended September 30, 2015 and 2014, respectively.

Estimated aggregate amortization expense related to the intangible assets for the remainder of 2015 and subsequent years is as follows:



	Amount
	(in thousands)
Remainder of 2015	$	1,982
2016	7,202
2017	5,972
2018	5,229
2019	2,814
Thereafter	6,354
Total	$	29,553

The changes to the Company’s carrying amount of goodwill were as follows:



	Nine Months Ended September 30, 2015						Year ended December 31, 2014
	Energy		Sports		Total		Energy			Sports		Total
	(in thousands)
Balance, beginning of period	$	28,693	$	2,171	$	30,864	$	65,359		$	2,171	$	67,530
Impairments	—		—		—		(36,666		)	—		(36,666		)
Balance, end of period	$	28,693	$	2,171	$	30,864	$	28,693		$	2,171	$	30,864

The Company performs its annual goodwill impairment test during the fourth quarter of each year, and more frequently if an event occurs or circumstances change to indicate that an impairment may have occurred. The Company's projections in the second quarter of 2015 reflected a decline in the projected operating income for Black Hawk Ltd. for 2015 as a result of the continuing weakness in the oil services industry and the specific adverse effects experienced by Black Hawk Ltd. in 2015. This decline in projected operating income resulted in the need to perform a goodwill impairment test for Black Hawk Ltd. during the second quarter of 2015. The fair value of Black Hawk Ltd. was determined based on a valuation using a combination of the income approach (discounted cash flows) and the market approach (guideline public companies and guideline transaction method). The fair value of Black Hawk Ltd. exceeded its carrying value, resulting in no impairment of goodwill in the period.

The components of goodwill at September 30, 2015, and December 31, 2014, were as follows:



	September 30, 2015			December 31, 2014
	(in thousands)
Goodwill	$	73,095		$	73,095
Accumulated impairment	(42,231		)	(42,231		)
Net goodwill	$	30,864		$	30,864

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details